As unfortunate as the recent oil drilling events in the Gulf of Mexico are, there are benefits for some established oil and natural gas development companies. These companies often find their fortunes rising and falling with the price of oil and natural gas. An investor that can find an oil and gas company which can meet demand as prices flux in the face of current events is one that will profit nicely if played correctly.

Pyramid Oil Company, an oil and natural gas exploration and development company, works to find and exploit crude oil resources in California, New York, Texas and Wyoming. The company has been in operation since 1909 and sells primarily to secondary crude oil refiners, pipeline and natural gas companies.

Perhaps the greatest benefit and detriment to the company being in operation for so long is its fully operational status. There is quite a bit of operational expense as new projects are developed and accounted for but overall price directs profitability. In the most recent reporting period, revenue increased to $971,000 from $878,000 in the same period 2008. There were certain production issues involved which reduced this revenue figure although overall they were not significant. To put these revenue figures into perspective, however, the increase in revenues reported during the period were based on $70.00 per barrel of oil. As that figure has since increased to a floating average of $85.00 per barrel, one can understand how increases in revenue might be affected.

As Pyramid Oil is an exploration and development company, the perspective investor also needs to balance the realities of price with the associated costs and success rates of exploration. Not all potential wells will yield desired results and cause a capital development decline. Overall, this is to be expected and be used as a part of the decision making process. The company, however, has been in this game for quite some time and understands how the process works. Add to this equation recent events in the Gulf of Mexico and the result becomes more positive for the company and its revenue projections in the nearer term.